Factors to Consider Before Expanding Globally

International expansion is a big step for any company. You might be scared and also excited since such a decision is risky. However, it will broaden your customer base and will increase your company image. With globalization, international expansion has become much simpler than before since you can get all necessary services such as money exchange, global market information etc. at the tip your finger. However, global expansion needs to be done carefully so here are a few things you have to consider before you do so.

Market opportunities

First you need to do your research and see if you have favourable market opportunities. Your product needs to be established well in your home country first, before it’s expanded in to other markets. The best time to expand is when your product has a higher market share in a rapidly growing market. In other words; when you are a star on your BCG matrix. The strong image you have built in the home country will help in expanding as your new customer base will begin to trust your products.

Local laws

Unlike work ethics that are common to all, the rules and regulations will change from country to country. It is vital that you do your research before you enter into the market. Make sure you have fulfilled all necessary requirements and submitted all documents. Labour laws maybe tight in some nations unlike open economies where you cannot recruit workers as you please. Certain important positions such as legal counsel jobs Singapore may need to be held by locals. Other strict may include environmental laws, laws on use of local natural resources etc.

Currency and payment methods

Currency decisions are important when recording your profits, purchasing raw materials, paying bills etc. Usually, accounting records are kept in the home currency and hence you need to decide on a set rate to record all these transaction. The foreign exchange rates fluctuate every day and hence choosing a stable rate is important. Or else you might overstate or understate your profits. Agree on a common currency such as the US dollar so that global transactions are easier. Ensure that the country you expand to accepts the brands of debit and credit card providers so that there is no difficulty in payments or receipts.

Consumer preferences

Different cultures prefer different commodities and hence you need to ensure your product is accepted by all. For example, you cannot sell pork based products in Islamic countries. Also, they might like to transact in their local language so make sure your marketing and sales promotions are done in the native language.